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<ns0:Id>20250SB__109299INT</ns0:Id>
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<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-13</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:MeasureNum>1092</ns0:MeasureNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Allen</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Allen</ns0:Name>
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<ns0:Title> An act to add Sections 798.11.1 and, 798.11.2 to, to add Article 7.5 (commencing with Section 798.83.1) to Chapter 2.5 of Title 2 of Part 2 of Division 2 of, and to repeal Section 798.80 of, the Civil Code, relating to mobilehome parks.</ns0:Title>
<ns0:RelatingClause>mobilehome parks</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Mobilehome parks: resident organizations: option to purchase.</ns0:Subject>
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<ns0:DigestText>
<html:p>Existing law, the Mobilehome Residency Law, requires the owner of a mobilehome park who lists for sale or offers to sell the mobilehome park to any party to provide written notice of the owner’s intention to sell the mobilehome park to a resident organization formed by homeowners for purposes of converting the mobilehome park to condominium or stock cooperative ownership interests and for purchasing the mobilehome park, subject to specified conditions.</html:p>
<html:p>This bill would repeal those provisions and would instead provide that if management receives an offer for the sale, lease, or transfer of the mobilehome park that management intends to accept, management shall, at least 360 days before making a final unconditional acceptance of the offer, give notice to each resident household in the park and specified public entities, as provided, and subject to
specified exceptions. The bill would require the notice to include a statement advising the recipient of the intended sale, lease, or other transfer of the park, a statement of the homeowners’ rights under the bill and the deadlines for exercising those rights, and the price, terms, and conditions of the offer management has conditionally accepted or plans to accept.</html:p>
<html:p>This bill would authorize a resident organization, as defined, to, no later than 180 days after the notice is sent, deliver a written proposed purchase agreement for the park to management, along with a statement that the homeowners of more than 50% of the mobilehomes in the park support submitting the proposed purchase agreement. This bill would require management to consider the resident organization’s proposed purchase agreement and negotiate with the resident organization in good faith to determine whether a mutual agreement can be reached to enable the resident organization to purchase the park,
and, if the offer is rejected, provide a good faith reason for the rejection. This bill would, if the resident organization’s proposed purchase agreement matches the price and substantially the same terms and conditions as the offer management has conditionally accepted or plans to accept, grant the resident organization the right to purchase the park at the price, terms, and conditions stated in its proposed purchase agreement. The bill would provide specified requirements and restrictions on management and the resident organization with regard to the proposed purchase agreement.</html:p>
<html:p>This bill would authorize a resident organization that represents 50% or more of the homeowners of the mobilehome park to, at its election and subject to rescission at any time, assign its rights under the bill to the municipality in which the resident organization is located, a housing authority located in the municipality, a state agency, or a qualified entity for the purpose of
continuing the use of the property as a park. The bill would require the Department of Housing and Community Development to establish a process for certifying specified entities as qualified entities, as provided, and to maintain and update annually a list of qualified entities to be made available to management for the purpose of distributing notices.</html:p>
<html:p>This bill would authorize a resident organization or public prosecutor, as specified, to bring an action against management that violates the bill for specified civil penalties and other relief. The bill would provide that its provisions shall be interpreted liberally and are severable.</html:p>
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<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
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<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_2D49B7C7-2DD4-486D-AA04-E66CE8344FAA">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:Content>
<html:p>This act shall be known as the Mobilehome Community Stability and Preservation Act.</html:p>
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 798.11.1 is added to the
<ns0:DocName>Civil Code</ns0:DocName>
, to read:
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<ns0:LawSection id="id_91D2EF53-48FA-42CA-ADF7-66B46D98AAA8">
<ns0:Num>798.11.1.</ns0:Num>
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<ns0:Content>
<html:p>“Resident organization” means a group of homeowners who have formed a nonprofit corporation pursuant to Section 23701v of the Revenue and Taxation Code, a cooperative corporation, or other entity or organization. A resident organization may designate an agent to act on its behalf.</html:p>
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<ns0:Num>SEC. 3.</ns0:Num>
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Section 798.11.2 is added to the
<ns0:DocName>Civil Code</ns0:DocName>
, to read:
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<ns0:Num>798.11.2.</ns0:Num>
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<html:p>“Qualified entity” means an entity that the Department of Housing and Community Development has certified pursuant to Section 798.83.2.</html:p>
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<ns0:Num>SEC. 4.</ns0:Num>
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Section 798.80 of the
<ns0:DocName>Civil Code</ns0:DocName>
is repealed.
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<ns0:Num>SEC. 5.</ns0:Num>
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Article 7.5 (commencing with Section 798.83.1) is added to Chapter 2.5 of Title 2 of Part 2 of Division 2 of the
<ns0:DocName>Civil Code</ns0:DocName>
, to read:
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<ns0:LawHeading type="ARTICLE" id="id_985B9AB7-1017-4137-832C-7FF3C5516B04">
<ns0:Num>7.5.</ns0:Num>
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<ns0:LawHeadingText>Mobilehome Community Stability and Preservation Act</ns0:LawHeadingText>
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<ns0:LawSection id="id_9E40B400-BEF6-4635-9D2C-187750053C59">
<ns0:Num>798.83.1.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
If management receives an offer for the sale, lease, or transfer of the mobilehome park that management intends to accept, management shall, at least 360 days before making a final unconditional acceptance of the offer, give notice to the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
To each resident household in the park by certified mail with return receipt requested, by first class mail with tracking, and by email, if provided by the resident.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
By certified mail with a return receipt requested, by first class mail, and by email, if available, with tracking to all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The mayor of the city in which the mobilehome park
is located, or, if located in an unincorporated area, the chair of the board of supervisors of the county.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The appropriate local public housing authority, if any.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The Department of Housing and Community Development.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The notice required by subdivision (a) shall include all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A statement advising the recipient of the intended sale, lease, or other transfer of the park.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A statement of the homeowners’ rights under this article and the deadlines for exercising those rights.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The price, terms, and conditions of any offer management has conditionally accepted or plans to accept concerning the
park, or a copy of that offer or purchase contract. In the case of a proposed sale of more than one park, or a park and one or more other nonrelated properties, in a single transaction, the notice shall state both the aggregate price and the price of the park in which the homeowners receiving the notice reside.
</html:p>
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<ns0:LawSection id="id_79F76CD2-DFD5-4BBE-B169-7F3AB168CAB6">
<ns0:Num>798.83.2.</ns0:Num>
<ns0:LawSectionVersion id="id_8FFF3EAC-02C0-46ED-AB97-518F2C1286D9">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The Department of Housing and Community Development shall, upon receipt of a notice under Section 798.83.1, make the list of qualified entities created pursuant to subdivision (c) available to management.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
After management receives the list from the department, management shall send a written copy of the notice prepared pursuant to Section 798.83.1 to the qualified entities included on the list which directly request the notice from management.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
An entity is not eligible to be certified as a qualified entity pursuant to subdivision (c) unless it is either of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Local nonprofit organizations and public agencies.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Regional or national nonprofit organizations and regional or national public agencies.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The Department of Housing and Community Development shall establish a process for certifying an entity listed in subdivision (b) as a qualified entity based on demonstrated relevant prior experience in California and current capacity, as capable of operating the housing and related facilities for its remaining useful life, either by itself or through an agent.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The Department of Housing and Community Development shall maintain and update annually a list of entities that are certified pursuant to this section.
</html:p>
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<ns0:LawSection id="id_12D1CC60-1C34-4E38-A14A-8EF104055C69">
<ns0:Num>798.83.3.</ns0:Num>
<ns0:LawSectionVersion id="id_4353CD52-D0E5-45CD-9799-D06187D2955D">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
No later than 180 days after a notice complying with Section 798.83.1 is sent, a resident organization, including a resident organization formed after the issuance of the notice, may deliver, in writing, a proposed purchase agreement for the park to management, along with a statement that the homeowners of more than 50 percent of the mobilehomes in the park support submitting the proposed purchase agreement. A homeowner may indicate support for proposing a purchase agreement by signing a petition or any other document that so states.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
If management does not receive a proposed purchase agreement in writing from a resident organization during the 180-day period provided by this section, management has no further duties under this
article with respect to the proposed sale, lease, or transfer of the mobilehome park.
</html:p>
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</ns0:LawSection>
<ns0:LawSection id="id_2F6D8385-1307-47E1-B3CD-9728D34C62E8">
<ns0:Num>798.83.4.</ns0:Num>
<ns0:LawSectionVersion id="id_50B449EA-5B35-4707-A077-58CFBBEC451C">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
If a resident organization or its assignee or agent delivers a proposed purchase agreement in writing to management in compliance with Section 798.83.3, management shall consider the proposed purchase agreement and negotiate with the resident organization in good faith to determine whether a mutual agreement can be reached to enable the resident organization to purchase the park. Management shall make the same information available to a resident organization that the community owner has or would have provided to another prospective purchaser. If management rejects the resident organization’s proposed purchase agreement, management shall provide a good faith reason in writing to the resident organization within three days of the date of rejection.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
If a resident organization or its assignee or agent delivers a proposed purchase agreement in writing to management in compliance with Section 798.83.3, and its proposed purchase agreement matches the price and substantially the same terms and conditions as the offer management has conditionally accepted or plans to accept, the resident organization shall have the right to purchase the park at the price, terms, and conditions stated in its proposed purchase agreement, and this subdivision shall apply rather than subdivision (a). Management shall not unreasonably refuse to enter into or unreasonably delay the execution or closing on a purchase agreement with a resident organization which has proposed a bona fide purchase agreement to meet the price and substantially equivalent terms and conditions of an offer for which notice is required to be given pursuant to Section 798.83.1.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Management shall not reject a proposed
purchase agreement solely on the basis of its inclusion of a financing contingency, the type of financing or payment method, or the time period for closing. If a resident organization and management enter into a purchase agreement for the park, the resident organization shall have 180 days from the date of the agreement to arrange all necessary financing, and a commercially reasonable time to close on the sale. If the resident organization fails to arrange all necessary financing during this 180-day period, or a longer period as the parties may agree to, or fails to close on the sale in compliance with the purchase agreement executed by the parties, management has no further duties under this article with respect to the proposed sale, lease, or transfer of the park.
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<ns0:LawSection id="id_5FEDC11D-8D2A-4823-9125-CAA14B3CE412">
<ns0:Num>798.83.5.</ns0:Num>
<ns0:LawSectionVersion id="id_35CFA22B-3807-45BE-9A19-EF6B281D4453">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
A resident organization that has rights under this article may, at its election, assign those rights to the municipality in which the resident organization is located, a housing authority located in the municipality, a state agency, or a qualified entity for the purpose of continuing the use of the property as a park. Upon assignment, the assignee shall be entitled to exercise the rights that this article grants to the assignor resident organization.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The resident organization may rescind any rights it has assigned pursuant to subdivision (a) at any time.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
This section shall not apply if the resident organization represents less than 50 percent of the homeowners of
the mobilehome park.
</html:p>
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<ns0:LawSection id="id_D6331B43-4110-420A-A090-163B2C4D2386">
<ns0:Num>798.83.6.</ns0:Num>
<ns0:LawSectionVersion id="id_40EEEE4D-1CE8-4EA7-AA31-5A262183B6CA">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Subject to subdivision (b), this article shall not apply to any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A lease of a lot within the park to a person who will live in a manufactured home on that lot.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A conveyance of an interest in the park that is incidental to the financing of the park.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A sale or transfer pursuant to eminent domain.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
An initial offer for sale, lease, or transfer from a resident organization that represents at least 50 percent of the homeowners of the mobilehome park.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
To qualify for an exemption under subdivision (a), a transaction shall not be made in bad faith, shall be made for a legitimate business purpose or a legitimate familial purpose, and shall not be made for the primary purpose of avoiding the opportunity-to-purchase provisions set forth in this article.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_C5479F22-766E-4787-9B74-33AC8364D05B">
<ns0:Num>798.83.7.</ns0:Num>
<ns0:LawSectionVersion id="id_0648B346-7F22-4255-967A-2923A563D8C0">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
A resident organization may bring a civil action against management who sells, leases, or transfers a park and fails to comply with this article. Management that violates this article shall be subject to a civil penalty in the amount of one hundred thousand dollars ($100,000) or 20 percent of the total sales price, whichever is greater.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Actions for relief pursuant to this article may be brought in the name of the people of the State of California by the Attorney General, or by the district attorney, county counsel, or city attorney of the location in which the violation occurred.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Any court of competent jurisdiction may grant relief that it finds necessary to enforce
this article, including the issuance of an injunction.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Lack of knowledge of this article by management shall not be deemed to be a defense to an action under this section.
</html:p>
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</ns0:LawSection>
<ns0:LawSection id="id_84FE24B0-D667-426B-8A9F-A4F781D221B5">
<ns0:Num>798.83.8.</ns0:Num>
<ns0:LawSectionVersion id="id_FA056922-4E51-4FEB-9180-CAAFEAC0091C">
<ns0:Content>
<html:p>This article shall be liberally interpreted to achieve its purposes of preserving affordable housing and expanding the opportunities for owners of mobilehomes and manufactured homes to purchase the community in which their homes are located.</html:p>
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<ns0:Num>SEC. 6.</ns0:Num>
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<html:p>The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.</html:p>
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